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Stablecoin-based remittances are not consistently cheaper than traditional transfer services once the full cost of moving between fiat currency and crypto is included, according to a Bank of Italy study. Researchers tested USDC transfers worth 200 units across 10 corridors connecting Italy with Argentina, Brazil, South Africa, the United Arab Emirates and Japan.
Total costs ranged from 0.30% to nearly 9% of the amount transferred. The blockchain transaction itself accounted for only a small portion, while the main costs came from converting money into and out of stablecoins and using domestic payment infrastructure.
Fiat On- and Off-Ramps Drive Most Costs
The study used a mystery-shopping approach, meaning researchers carried out actual transfers rather than relying only on estimated fees. Each transaction followed the full process from obtaining USDC through transferring it onchain to converting the funds back into local currency. The Bank of Italy said:
“Stablecoins show no systematic cost advantage over traditional channels.”
Comparisons with Wise also varied by corridor. Stablecoin transfers were cheaper in three of seven comparable routes, while traditional transfers were cheaper in four, indicating that the outcome depended heavily on local payment and foreign-exchange conditions.
Transfer Speeds Also Depend on Local Payment Rails
Stablecoins did not provide a consistent speed advantage either. Transfers were completed in less than 20 minutes where instant domestic payment systems were available, but took one or two business days when standard bank transfers were required.
The findings suggest that fast blockchain settlement does not necessarily translate into equally fast end-to-end remittances. The Bank of Italy identified fiat on- and off-ramp processes as the main source of both costs and delays.
Findings Apply to Specific Corridors
The study focused on transfers worth 200 USDC across a limited group of countries, so its results should not be treated as evidence that stablecoins are always more expensive than traditional remittances. Costs can differ depending on the payment corridor, exchange, funding method and local infrastructure.
The research instead finds that low blockchain fees alone are not enough to guarantee cheaper cross-border payments. Much of the final cost still depends on the traditional financial infrastructure used before and after the onchain transfer.
